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CST: 26/05/2019 02:43:03   

The Southern Banc Company, Inc. Announces Second Quarter Earnings

110 Days ago

GADSDEN, Ala., Feb. 04, 2019 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company, formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced a net income of approximately $133,000, or $0.17 per basic and diluted share, for the quarter ended December 31, 2018, as compared to a net loss of approximately $560,000, or ($0.73) per basic and diluted share, for the quarter ended December 31, 2017.  During the quarter ended December 31, 2017, the Company recorded an income tax expense of approximately $605,000 due to the tax law changes. For the six months ended December 31, 2018, the Company recorded net income of approximately $259,000, or $0.34 per basic and diluted share, as compared to a net loss of approximately $737,000, of ($0.96) per basic and diluted share for the six months ended December 31, 2017.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins improved during the quarter as compared to the same period in 2017. Net interest income before provision for loan losses for the quarter ended December 31, 2018 was approximately $1.2 million as compared to approximately $1.1 million for the quarter ended December 31, 2017, an increase of approximately $109,000 or 10.2%.  The improvement in the net interest margin before provision for loan losses for the quarter was primarily attributable to an increase in total interest income of approximately $127,000, offset by an increase in total interest expense of approximately $18,000.  For the three months ended December 31, 2018 the Company recorded no provision for loan and lease losses as compared to approximately $11,000 in the same period in 2017.  Net interest income after provision for loan and lease losses increased approximately $120,000, or 11.33% for the quarter ended December 31, 2018, as compared to the same quarter in 2017.  For the quarter ended December 31, 2018, total non-interest income decreased approximately $2,000 or (3.9%) while total non-interest expense increased approximately $91,000 or 9.6% as compared to the same three month period in 2017.  The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately ($4,000) or (27.8%) offset in part by an increase in customer service fees of approximately $2,000 or 10.5%.  The increase in non-interest expense was primarily attributable to an increase in salaries and benefits of approximately $63,000, professional service expenses of approximately $54,000, data processing expenses of approximately $9,000 and occupancy expense of approximately $1,000 offset in part by a decrease in other operating expense of approximately $36,000. 

The Company’s total assets at December 31, 2018 were $101.3 million, as compared to $94.1 million at June 30, 2018.  Total stockholders’ equity was approximately $11.3 million at December 31, 2018 or 11.2% of total assets as compared to approximately $10.9 million at June 30, 2018 or approximately 11.6% of total assets.

The Bank has four branch offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama, and one commercial finance office located in Birmingham, Alabama. The stock of The Southern Banc Company, Inc. trades in the over-the-counter market on the OTC Pink Marketplace® under the symbol “SRNN”.

Certain statements in this release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “target,” “plan,” “project,” “continue,” or the negatives thereof, or other variations thereon or similar terminology, and are made on the basis of management’s plans and current analyses of the Company, its business and the industry as a whole.  These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes.  The above factors, in some cases, have affected, and in the future could affect the Company’s financial performance and could cause actual results to differ materially from those expressed or implied in such forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

(Selected financial data attached)

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)

    December 31,     June 30,
    2018
    2018
           
           
ASSETS
         
               
CASH AND CASH EQUIVALENTS $ 17,394     $ 4,208  
               
SECURITIES AVAILABLE FOR SALE, at fair value   18,215       19,599  
           
FEDERAL HOME LOAN BANK STOCK   301       429  
           
LOANS RECEIVABLE, net of allowance for loan losses              
of $1,032 and $1,093, respectively   62,867       67,218  
PREMISES AND EQUIPMENT, net   734       715  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE   196       207  
PREPAID EXPENSES AND OTHER ASSETS   1,570       1,705  
           
TOTAL ASSETS $ 101,277     $ 94,081  
           
           
LIABILITIES
         
               
DEPOSITS $ 82,936     $ 77,014  
FHLB ADVANCES   5,000       6,000  
OTHER LIABILITIES   2,033       157  
           
TOTAL LIABILITIES   89,969       83,171  
           
           
STOCKHOLDERS' EQUITY:              
Preferred stock, par value $.01 per share              
500,000 shares authorized, shares issued              
and outstanding-- none   0       0  
Common stock, par value $.01 per share,              
3,500,000 authorized, 1,454,750 shares issued   15       15  
Additional paid-in capital   13,887       13,887  
Shares held in trust, 39,260 shares at cost,              
respectively   (706 )     (706 )
Retained earnings   7,072       6,813  
Treasury stock, at cost,              
648,664 shares   (8,825 )     (8,825 )
Accumulated other comprehensive loss   (135 )     (274 )
               
TOTAL STOCKHOLDERS’ EQUITY   11,308       10,910  
               
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 101,277     $ 94,081  
           

THE SOUTHERN BANC COMPANY, INC. 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)

    Three Months Ended     Year-to-Date
    December 31,     December 31,
                     
    2018
    2017     2018
  2017
    (Unaudited)           (Unaudited)    
                     
INTEREST INCOME:
                   
                     
Interest and fees on loans $ 1,247   $ 1,120     $ 2,491 $ 2,284  
Interest and dividends on securities   109     144       223   305  
Other interest income   47     12       70   18  
                         
Total interest income   1,403     1,276       2,784   2,607  
                         
INTEREST EXPENSE:                    
Interest on deposits   202     168       384   335  
Interest on borrowings   19     35       43   62  
Total interest expense   221     203       427   397  
Net interest income before provision                        
for loan losses   1,182     1,073       2,357   2,210  
Provision for loan losses   0     11       0   581  
Net interest income after provision                        
for loan losses   1,182     1,062       2,357   1,629  
                         
NON-INTEREST INCOME:                    
Fees and other non-interest income   28     26       58   49  
Miscellaneous income   11     15       20   32  
Total non-interest income   39     41       78   81  
                     
NON-INTEREST EXPENSE:                    
Salaries and employee benefits   561     498       1,151   1,016  
Office building and equipment expenses   58     57       113   115  
Professional Services Expense   147     93       263   171  
Data Processing Expense   130     121       261   233  
Other operating expense   145     181       297   307  
Total non-interest expense   1,041     950       2,085   1,842  
                         
Income (loss) before income taxes   180     153       350   (132 )
                         
PROVISION FOR INCOME TAXES   47     713       91   606  
                         
Net Income (Loss) $ 133   $ (560 )   $ 259 $ (737 )
                         
LOSS PER SHARE:                        
Basic $ 0.17   $ (0.73 )   $ 0.34 $ (0.96 )
Diluted $ 0.17   $ (0.73 )   $ 0.34 $ (0.96 )
                         
DIVIDENDS DECLARED PER SHARE $ ---   $ ---     $ --- $ ---  
                     
AVERAGE SHARES OUTSTANDING:                    
Basic   766,826     766,826       766,826   766,826  
Diluted   766,826     766,826       766,826   766,826  
                         

Contact: Gates Little
(256) 543-3860

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